For personal use only

Transcription

1 ASX ANNOUNCEMENT 23 August 2012 RAMSAY HEALTH CARE REPORTS 14.5% RISE IN FULL YEAR CORE NET PROFIT Financial Highlights Core net profit 1 up 14.5% to $252.6 million Reported statutory net profit after tax up 23.0% to $244.1 million Core EPS 2 up 14.8% to cents Group revenue up 6.4% to $3.9 billion o Group EBIT up 10.9% to $438.8 million Australia and Indonesia revenue up 7.7% to $3.2 billion o Australia and Indonesia EBIT up 16.4% to $375.9 million Europe: o UK EBITDAR up 2.1% to 91.0 million o France EBITDAR up 14.9% to 30.0 million Final dividend 34.5 cents fully franked, up 16.9% on the previous corresponding period, bringing the full-year dividend to 60.0 cents, up 15.4% Targeting core NPAT and core EPS growth for the Group of 10% - 12% in FY13 Overview Australia s largest private hospital operator Ramsay Health Care today announced a Group core net profit after tax from continuing operations (before non-core items and amortisation of intangibles) of $252.6 million for the year to 30 June 2012, a 14.5% increase on the previous corresponding period. Group core net profit delivered core earnings per share (EPS) of cents for the year, a 14.8% increase on the previous corresponding period and in line with upgraded guidance announced to the market at the half year. The result was driven by strong performances across the Australian hospitals as well as a positive contribution from Ramsay s UK operations. In France, Ramsay Santé performed to expectations. 1 Before non-core items 2 Before non-core items and after CARES dividends

2 2 Ramsay recorded a statutory net profit after tax of $244.1 million (up 23.0% on the prior year) after deducting net non-core items of $8.5 million (net of tax). Included in the non-core items was the annual non-cash charge for deferred rent from the leasing of UK hospitals ($23.7 million gross), a charge for expiring debt facility costs ($5.9 million gross) and an income tax refund of $17.0 million. Overall non-core charges were down 62%. Directors are pleased to announce a fully-franked final dividend of 34.5 cents, up 16.9% on the previous corresponding period, taking the full year dividend to 60.0 cents, up 15.4% on the previous year. The dividend Record Date is 7 September 2012 and the Payment Date is 26 September The Dividend Reinvestment Plan remains suspended. Ramsay Managing Director Christopher Rex said the positive result reflected a strong performance across all areas of the business. The ageing population is driving an unprecedented growth in demand for healthcare. Ramsay has invested in a significant capacity expansion programme and will continue to invest to ensure it is able to provide needed hospital services to the communities in which it operates. Since 2007, Ramsay Health Care has committed in excess of $900 million in capacity expansions and facility improvements, and we anticipate ongoing investment of at least $100 million for new brownfield developments annually. In line with this, $103 million was approved for new projects during the year. A new debt facility, executed in November 2011, provides significant debt headroom for our continuing brownfield development programme, future acquisitions and working capital. During the year, Ramsay Health Care was recognized in the 2012 Global 100 Most Sustainable Corporations in the World. Announced at the World Economic Forum in Davos, Ramsay Health Care was one of only six Australian companies and the only Australian-based healthcare company recognized by the industry-leading corporate sustainability index. This recognition follows on from the Company s inclusion in the FTSE4Good Index for meeting globally recognized environmental, social and corporate governance standards. It is a great achievement to be admitted to these corporate sustainability indices as it confirms the Company s strategy and vision becoming one of the world s most respected private hospital operators, said Mr Rex. We recognise that continuous improvement in all areas of our business is critical to our success. We place a great deal of importance on safety, quality, human resources and how we operate our hospitals in our local environments.

3 3 Operational highlights Australia Ramsay s Australia and Indonesian business achieved revenue growth of 7.7% and EBIT growth of 16.4% during the period. EBITDA margins rose to 15.2% from 14.3%. During FY12, a number of projects were completed at our Australian hospitals including an $8.7 million expansion of St Andrew s Private Hospital in Ipswich, Queensland; a $3.7 million expansion of Warners Bay Private Hospital in Newcastle, New South Wales; and an $11.8 million expansion of Mt Wilga Private Hospital, a rehabilitation hospital in northern Sydney. Completed projects are being delivered on-time and under-budget and are meeting their business plans. The Company expects ongoing investment of at least $100 million annually and, during FY12, $103 million was approved for new brownfield developments both in Australia and overseas. Projects approved included a $47 million expansion of Greenslopes Private Hospital in Brisbane, which will see the introduction of obstetric services, an additional 74 beds; 4 theatres and 4 birthing suites. Construction is underway and is expected to be completed in mid The major $393 million construction at Joondalup Health Campus ($133 million funded by Ramsay and the balance by the Western Australian State Government) remains on schedule for a completion date of mid In September 2011 Ramsay commenced construction of the 200 bed private hospital on the Sunshine Coast. The Sunshine Coast University Private Hospital which will open in December 2013, will deliver a significant range and volume of services to public patients under contract with Queensland Health as well as private patient services. Operational highlights Europe Ramsay UK s revenue rose 3.0% during the year to million despite having to digest the expected change in pricing of the ISTC contract revenues. EBITDAR increased by 2.1% to 91 million. In FY12, Ramsay UK hospitals recorded an 11.3% rise in NHS admissions. With self pay and private medical insurance volumes still recovering, NHS admissions now exceed 65% of the total admissions to Ramsay s UK facilities. UK operating margins before rent (EBITDAR) remain strong at approximately 25% despite the majority of growth coming from NHS patients. During the year, the Health & Social Care Bill was passed into legislation. The primary focus of the legislation is the restructure of the NHS but the legislation strongly endorses competition, patient choice and private sector involvement in the delivery of publicly funded healthcare in the UK.

4 4 Overall EBITDAR for Ramsay Santé increased by 14.9% to 30.0 million. Excluding Clinique Convert acquired in May 2011, Ramsay Santé showed modest growth with EBITDAR increasing by 1.2%. In France, market conditions are expected to remain challenging in the short term, however Ramsay remains positive about this marketplace which boasts a well-regarded health system and positive demographics. Balance Sheet and Cash Flow Strong operating cash flow has resulted in a further reduction in leverage. Furthermore, effective working capital management delivered a high cash conversion rate for the Group of more than 100% of operating profit (EBITDA) to gross operating cash flow. In November 2011, Ramsay executed a new underwritten debt facility agreement of A$2 billion equivalent. The new syndicated debt facility allowed for the refinancing of the existing debt facility and provides significant debt headroom for Ramsay s continuing brownfields programme and developments, future acquisitions and working capital. The first facility draw down was made on 30 April Outlook The ageing demographic is continuing to drive increased demand for healthcare. Our strategy of prudent capacity expansions and acquisitions means Ramsay Health Care is well-placed to be able to provide services to the growing number of patients requiring treatment, Mr Rex said. Our ongoing investment in capacity expansion will keep adding to earnings and contribute positively to EPS. He said governments around the world were increasingly concerned about the rising costs of healthcare and, as a result, he anticipated increasing opportunities for private sector involvement in the provision of public hospital services. The development of the Sunshine Coast University Private Hospital in conjunction with Queensland Health is a perfect example of how the private sector can work together with government to deliver a world class tertiary health care facility for the community, Mr Rex said. He said the Company remained positive about opportunities for expansion overseas. The UK business is well placed to capture future growth in NHS volumes. Market conditions in France are still challenging but the healthcare sector remains an attractive proposition.

5 5 There is also significant growth in healthcare spending expected in emerging markets and we continue to monitor and investigate opportunities in these markets and other regions where there is a strategic fit and which meet our investment hurdles. Given the strong industry fundamentals and the continuing implementation of our successful growth strategy, barring unforeseen circumstances Ramsay is targeting core NPAT and core EPS growth for the Group of 10% - 12% for FY13. Contacts: For media enquiries: Christopher Rex Carmel Monaghan Managing Director Marketing & Public Relations Manager Ramsay Health Care Ramsay Health Care About Ramsay Health Care Ramsay Health Care was established in Sydney, Australia in 1964 and has grown to become a global hospital group operating 117 hospitals and day surgery facilities across Australia, the United Kingdom, France and Indonesia. Ramsay Health Care is well-respected in the health care industry for operating quality private hospitals and for its excellent record in hospital management and patient care. It is this exceptional reputation that attracts leading health care practitioners to work in Ramsay facilities. Ramsay Health Care facilities cater for a broad range of health care needs from day surgery procedures to highly complex surgery, as well as psychiatric care and rehabilitation. With circa 10,000 beds, the Company employs over 30,000 staff across three continents and treats over 1 million patients per annum. In 2007, Ramsay Health Care acquired Capio UK and its portfolio of hospitals in England. Ramsay Health Care UK is now one of the leading providers of independent hospital services in England, with a network of 38 acute hospitals and day procedure centres providing a comprehensive range of clinical specialties to private and self insured patients as well as to patients referred by the NHS. In March 2010, Ramsay Health Care purchased a 57% interest in Group Proclif SAS (Proclif), a leading private hospital operator based in France. Proclif changed its name to Ramsay Santé. Ramsay Santé is one of the leading operators of private hospitals in the greater Paris region managing eight acute hospitals in the fields of medicine, surgery and obstetrics with approximately 1000 beds and day places. Ramsay Health Care purchased a further hospital Clinique Convert in the Rhône Alpes region, in The Company now operates 9 hospitals in France.

6 6 Summary of Financial Performance Year Ended 30 June $ 000's FY2012 FY2011 Australia & Indonesia Europe Group Group % Increase/ (Decrease) Net Profit After Tax (NPAT) Operating revenue 3,178, ,688 3,956,476 3,719, % EBITDA 482, , , , % EBIT 375,858 62, , , % Core NPAT (1) 252, , % Net non-core items, net of tax (2) (8,541) (22,211) Reported NPAT 244, , % Earnings Per Share (cents) Core EPS (3) % Reported EPS % Dividends Per Share (cents) Final dividend, fully franked % Full-year dividend, fully franked % Notes (1) Core NPAT is before non-core items and from continuing operations. (2) In line with accounting standards, net non-core items net of tax include the annual non-cash portion of rent expense of $16.6 million net of tax relating to the UK hospitals. (3) Core EPS is before non-core items and from continuing operations and after CARES Dividends.